chapter 10 : Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

In the study of strategic management, we will gain an understanding of what managers need to do to the organization to implement the strategy effectively and successfully.

In addition, we will also make sure that with everything that we learn why rent, for training, and retaining the right people is an important component of the strategy implementation.

We also need to understand that implementing a good strategy requires continuously build and upgrade resources and organizational capabilities.

In this chapter should also be emphasized profit order what issues to consider in creating a supportive organizational structure, strategy and organizing the work effort.

Finally, we need to recognize the advantages and disadvantages of centralized and decentralized decision-making in implementing the chosen strategy.

 

The 10 Basic Tasks of the Strategy Execution Process

Executing strategy is an action-oriented, operations-driven activity revolving around the management of people and business processes. The way for managers to start in implementing a new strategy is with a probing assessment of what the organization must do differently to carry out the strategy successfully. They should then consider precisely how to make the necessary internal changes as rapidly as possible.

RECRUITING, TRAINING, AND RETAINING CAPABLE EMPLOYEES

Building core competencies and competitive capabilities is a time-consuming, managerially challenging exercise that can be approached in three ways:

(1) Developing capabilities internally

(2) Acquiring capabilities through mergers and acquisitions

(3) Accessing capabilities via collaborative partnerships.

To align the firm's organizational structure with its strategy, it is important to make strategy-critical activities the main building blocks. There are four basic types of organizational structures: the simple structure, the functional structure, the multidivisional structure, and the matrix structure. Which is most appropriate depends on the firm's size, complexity, and strategy.

 

MATCHING TYPE OF ORGANIZATIONAL STRUCTURE TO STRATEGY EXECUTION REQUIREMENTS

That all, thank you.

Assalamualaikum.